Turbo Tax Considers Returned Bonus as Unemployment/Paid family Leave

[TahaTax2018]

Hi,

I added my returned after tax Bonus [Changed employer] in Repayment over 3000$ in Deduction section. Turbotax after processing it, it adds automatically as negative number as :Unemployment / paid family leave (1099-G): that I have not received it as I did not have unemployment and that money is returning money to company that I already taxed on all of bonus. Wanted to see it is OK?

[JosephS1]

Please expand on and clarify your question.  Are you saying you received a bonus at some time and returned it due to a change of employment?  There is different treatments available so need to know more details if possible.

[TahaTax2018]

Sorry for confusion, Let me explain more clearly. I did receive bonus in 2021, then I changed my employer in middle of 2022. Then, I paid employer prorated after tax bonus. Now, If I go to add Federal>Deductions>Other Deductible Expenses>Claim of right repayment over $3,000, and that that amount to claim, I get credit as I already paid tax in 2021, then Turbo tax adding negative of that value in Federal>Wages&Income>Unemployment / paid family leave (1099-G).

It seems not right and do not know what is right way to do it.

[KrisD15]

When you go to Step-By-Step, the negative amount does show on that screen under Unemployment, but that is just showing YOU that your income was that much less because of the repayment. 

The negative number under Unemployment does not flow to your return. 

You need to look at Schedule A line 16 for that number (as a positive number) 

You have two options, 

1. Enter the amount you paid back as an Itemized Deduction. In order to do this, you must Itemize Deductions and file Schedule A with your tax return. 

2. Figure your 2021 tax with the lesser amount of income (your 2021 income less what you paid back) and take the difference on your 2022 tax return.

If you are able to Itemize, the repayment will be on Schedule A line 16. 

If you are not itemizing, you need to follow that second set of instructions. The second option involves you using your 2021 tax file, editing your wages and then taking the difference in your tax liability. Enter that difference on your 2022 1040 Worksheet which you can only get to using TurboTax Desktop. 

The second option will not be what you paid back, it will be what you paid in tax for the income you paid back. You get the tax back. 

Instructions